{{B}} A{{/B}}
Market awareness of the MP3 has exploded and the retailer who specializes in MP3 is seeing growth like never before. Admittedly, some customers buy their first MP3 in the supermarket, but for advice, add-ons and particular services they turn to the specialist. There are a large number of MP3 retailers and I can't help but feel the market only has room for four players. Undoubtedly, customer service is the factor that differentiates operators and I think this year we will probably see rationalization in the sector.
{{B}} B{{/B}}
When I first started in the industry, MP3 were retailing at a thousand pounds and were as large as box files. Now, prices are constantly being driven down, because they are getting more compact and also there is intense competition between the MP3 providers. This will continue, and while retail dealers' profits will be affected dramatically, MP3 providers will have to generate more revenues by offering more services to the MP3 user.
{{B}} C{{/B}}
Over a few years, prices have dropped sharply and technological advances have meant products have changed -- and are changing. Successful retailers must try to keep on top of these developments and invest in the training of employees so they are able to offer impartial advice to customers. E-commerce is taking off but this won't necessarily replace traditional retail outlets. In order to stand out, you need innovative ideas on customer service. We don't believe in criticizing other retailers, but there's nothing particularly exciting out there at present.
{{B}} D{{/B}}
The MP3 business is behaving like the Internet industry in take-up and the pace of innovation, and it's important not to be left behind. We must continue to innovate in delivering the product to the customer. In terms of service provision, you can draw comparisons between us and our closest rival, but clearly all the main MP3 retailers have succeeded in taking the industry forward. Growth has accelerated rapidly and the MP3 has changed from simply being an entertaining tool, to being a multifunctional gadget for everyone.